Accounting Multiple Choice Question – 28 August 2022

When should a manufacturing company purchase its products from an outside supplier?

When the price is….?

Select ONE answer:

1. less than the selling price but more than the total cost.
2. less than the marginal cost of production.
3. less than the marginal cost of sales but more than the marginal cost of production.
4. less than the total cost but more than the marginal cost of sales.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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